Medical benefits can make up a significant part of a whole compensation package. Providing high-quality, low-cost medical coverage for employees is an important aspect of a total compensation package. There are roughly 1.4 million people covered by healthcare in Maryland, whether you work for Marriott International or Medstar Health.
If you have more than 50 workers in Maryland, the ACA (Affordable Care Act) requires that you provide healthcare to your staff. Because this can be achieved in a variety of ways, we've divided it up based on small businesses (1-50 employees) and large businesses (51 or more employees).
There are 59,000 small employers across Maryland, representing over 245,000 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 68% of Maryland employers provide access to medical benefits, with 64% taking advantage of them. For small employers in Maryland, the employer covers an average of 77% for single employees and 62% for families. This costs the small employer on average $448 each month for an individual and $1072 for a family. The employee then has to pay a monthly amount as well, which comes out to be $133 for single employees and $652 for families. To understand the ranges, a family's individual component can range from $388 at the 25th percentile to $828 at the 75th percentile.
For small employers, there are a variety of design options for company networks. 17% of employees select high deductible health plans, 9% select an HMO, and 48% pick a PPO. Having numerous plan types to pick from allows for various levels of coverage. This may be obtained with a restricted network that includes only certain PCPs, specialists, and hospitals or an open network that provides access to many doctors and hospitals.
In Maryland, 36% of businesses provide a Health Savings Account (HSA) and 44% a Healthcare Flexible Spending Account (FSA) to assist employees in managing their expenses. With either choice, employers may help their staff spend money efficiently while saving them money at the same time.
34% of small employers provide dental and vision benefits, whereas only 21% offer dental coverage, which is far less than that of big businesses. This is a significant benefit since 75% utilize dental services and 73% use vision services. As a result, both dental care and vision treatment are important offerings for employers when selecting their comprehensive benefits package.
In the state of Maryland, 29,000 large employers provide medical coverage to over 1,240,000 individuals, with 70% taking advantage of the benefit. Larger employers, compared to smaller ones, are generally able to provide most comprehensive medical benefits. On average, Maryland employers cover 79% of the monthly premium for single employees and 70% of the premium for families. On the employer side, this equates to a monthly premium average of $508 per month for singles and $1323 for families. For employees, this costs an average of $131 per month for single employees and $562 for families, with costs ranging anywhere from $84 each month for a family at the 25th percentile to $163 for a family at the 75th percentile. However, if you’re lucky enough to work with a few select Maryland large employers, 9.0% cover all medical expenses for single individuals, and 1.8% cover all expenses for families.
Plan designs might differ depending on employee demographics. In Maryland, 55% of employees join up for PPO plans, 9% for HMO plans, and 29% for High Deductible Health Plans. The plan type has an influence on the breadth of care provided by physicians and hospitals, as well as copays, deductibles, and other details.
55% of Maryland's major businesses offer a Health Savings Account (HSA) while 67% provide a Flexible Spending Account (FSA). When assisting clients in managing their medical expenditures from a tax-advantaged standpoint, both an FSA and an HSA are essential components.
Large businesses, on average, provide more dental and vision plan options than small employers. Large Maryland businesses provide dental plans to their workers 57% of the time, with 80% utilizing that option, and 38% offering vision plans with 73% taking advantage of those services.
Whether you're a small or large company in Maryland, choosing a benefits consultant to design your health plan is crucial. Mployer Advisor can provide you with a list of businesses in your region that specialize in medical benefits if you want one.
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